What happened with the world economies in the 1930s?
I believed that what caused the Great Depression starting in 1929 was the great amount of speculation in the US Stock Market. Stocks shot up dramatically and the market was driven by greed. Even banks invested in the stock market and everybody was making a great return-on-investment until the “bubble-burst”. At this point, stocks were very much over-valued and the stock market declined sharply and quickly. At this point, the stock market was driven by fear and “the bottom fell out of the stock market”. People who had money in the bank wanted to take it out to make sure that their money was safe and a “run on the bank” happened. Banks started to fail which made the stock markets worse as banks liquidated and more people wanted their cash out of the bank and into their own hands, thinking that their money would be safer. Because of the rise and fall of the stock market and the run on the banks which cause many to fail, the economy was ruined. Today, banks are insured by the US Government
